Cash offer for Singapore’s POSH formally launched

Quetzal Capital has now formally launched its voluntary conditional cash offer for Singapore’s offshore support vessel operator PACC Offshore Services Holdings (POSH).

POSH Mallard vessel; Source: Kuok Group

Quetzal Capital is the bid vehicle formed by certain members of the Kuok group of companies, namely Kuok (Singapore) Limited (KSL), Trendfield Inc., a wholly-owned subsidiary of Kuok Brothers Sdn Bhd and Merry Voyage Limited, a wholly-owned subsidiary of Kerry Holdings Limited. The Kuok Group is a conglomerate with diversified investments in commodities, hospitality, logistics, real estate and shipping businesses, among others.

Quetzal Capital announced a voluntary conditional cash offer for all of the issued and outstanding ordinary shares of POSH in early November.

In an update on Wednesday, Quetzal Capital said it had despatched the offer document in relation to its voluntary conditional cash offer for POSH.

The company said that acceptances of the offer must be received no later than 5:30 p.m. (Singapore time) on December 18, 2019, or such later date(s) as may be announced from time to time by or on behalf of the offeror.

The offer price of S$0.215 in cash per offer share represents a premium of approximately 97.2% over the closing price on the last full market day immediately prior to the date of announcement of the offer, being October 30, 2019. The offer price also represents premiums of approximately 109.8%, 96.2%, 69.6% and 35.3% over the 1-month, 3-month, 6-month, and 12-month volume-weighted average prices, respectively, up to and including the last trading day.

The offeror is making this offer in view of the continuing challenges in the global offshore oil and gas sector, as it believes that privatizing POSH will provide it with more flexibility to manage POSH’s operational and funding requirements, and also optimize the use of POSH’s resources.

The offer will be conditional on the offeror having received, by the close of the offer, valid acceptances in respect of such number of shares which will result in the Offeror holding not less than 90% of the total number of shares in issue (excluding any treasury shares) as at the close of the offer.

As of November 20, 2019, the offeror has received irrevocable undertakings in respect of approximately 80.86% of shares in issue, from Kuok (Singapore) Limited (KSL), KSL’s wholly-owned subsidiary, Camsward and certain other shareholders.

Offshore Energy Today Staff

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